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Sunday, 12 July 2015


PRINCIPLES OF MANAGEMENT: Importance of Management by Objectives - Part II

Some of the remaining points in the importance of management by objectives are given below:-

Delegation of Authority:
The Management by Objectives strengthens and gives systematic coordination to the organizational structure of the business or industrial unit. The system gets developed because of appropriate balance between authority & responsibility.
All the workers, subordinates, departmental heads and senior levels of managers have complete authority to discharge the duties, further it is also delegated according to the needs or requirements of the business or industrial unit. A smooth and harmonious work environment comes into existence because of Delegation of Authority.

Feeling of Responsibility:
The Delegation of Authority towards the performance of job/work for the goal achievement of the organization creates an inborn feeling of responsibility. As well as, time to time evaluation of performances and its relation with incentives and promotion gives a sincere and serious inherent feeling of responsibility. Duties delegated are supervised and evaluated, so process of job performances are taken very seriously in a disciplined way. Thus with Authority to perform the decided objectives, Responsibility towards it develops with sincere feeling.

Best Communication System:
The Organization has hierarchical levels of management, so most of the delegation of authority is done from the top towards the bottom level. A system gets established in such a way that all information and communication has to pass through these channels in either way from top to bottom or bottom to top. Timely information passes from subordinates to management or the other way round, which establishes cordial and harmonious atmosphere. This provides effective communication thereby directly improving the efficiency and production of business or industrial unit.    

The Management by Objectives has a very high value towards coordination and regards it as the essence of Management. It is the effort of Coordination between all the factors in the organization, its departments and individual manpower is that all are equally and systematically coordinated. This stops the chaotic inclination in the organization.

The Management by Objectives takes a pre decided path towards the achievement of objectives of the unit. All the factors are planned and decided taking the futuristic views but are mostly analyzed with the actual time bound results.  This actual standardized checking and correction is the backbone of management and is the best possible control in the process. 

Performance Based System:
The Management by Objectives compares actual time base results with pre determined projections, which provides steps and standards for determination of increments, incentives and other promotion. The performances are the base parameters for any concerned employee. This generates a feeling of responsibility and human bonding towards fellow workers and subordinates as well as with senior management. Job satisfaction & future aspirations gets better developed under such circumstances.   

The Management by Objectives supports & develops positive environment in the business or industrial unit where all types of wastages is reduced to minimum and maximizing the overall production. This helps in reducing the unnecessary expenses. So the pre determined objectives is achieved within stipulated time with little or no wastage. Ultimately this process boosts the profitability of the unit.


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